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Orosur Mining impresses as profits rebound

Monday, October 17, 2016 3:01
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Orosur Mining Inc (LON:OMI TSE:OMI)  swung into the black as cost cutting and a higher gold price boosted the performance of its San Gregorio gold mine in Uruguay.

Ignacio Salazar, Orosur’s chief executive, said it had been a strong quarter for the gold miner.

Cash operating costs in its first quarter to August were below US$700/oz, all-in-costs below US$1,000/oz, net profit US$2.8mln (US$1.73mln loss) and cash from operations of US$4.8mln.

Production dropped to 9.950oz (12,471oz) with revenues of US$12.7mln (US$14.5mln).

“I believe the financial results speak for themselves, and taken together with the exploration and development progress we reported last week, show this is an exciting time for the company.”

The miner said then that its new mining operation at San Gregorio West was advancing according to plan and on budget with production due to commence at the end of the second quarter.

The locations adjacent to San Gregorio West, meanwhile, had potential to add reserves and expand the project.

Orosur maintained guidance for the current year at 35,000 to 40,000 oz of gold at operating cash costs of between US$800 – US$900/oz.

Cantor Fitzgerald said Orosur beat cost guidance by 18% and with the new underground mine at San Gregorio West and its ongoing exploration programme in and around its existing operations in Uruguay it is well- placed.

‘Buy’ is its recommendation with a target price of 32p.

Shares rose 4% to 18.2p.

Story by ProactiveInvestors


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